DAR File No. 44016

Commerce, Administration

Rule R151-55

Regulatory Sandbox Program Rule

Notice of Proposed Rule

(New Rule)

DAR File No.: 44016
Filed: 08/23/2019 02:21:04 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The Regulatory Sandbox Program (Program) passed in the 2019 General Session under H.B. 378. This rule complies with the Administrative Procedures Act requirements for informal proceedings by designating proceedings as informal, and specifying procedures for informal proceedings under this new Program.

Summary of the rule or change:

Section R151-55-1 designates a title for this new rule. Section R151-55-2 specifies the authority and purpose of this new rule. Section R151-55-3 designates proceedings as informal, notes that the Administrative Procedures Act and Commerce Administrative Procedures Act rules apply, that there will not be hearings held, and that the manager of the Program will act as presiding officer.

Statutory or constitutional authorization for this rule:

• Subsection 13-1-6(2)

Anticipated cost or savings to:

the state budget:

This rule provides procedural guidance for the Program proceedings and will therefore not impact state budget, as occasional informal proceedings were anticipated as a cost of regulating the Program.

local governments:

Because local governments are not typically involved in the procedures being proposed by this rule, this proposed rule is not expected to have any impacts on local governments' revenues or expenditures.

small businesses:

This rule may result in a modest benefit to small businesses involved in the Program administrative proceedings relative to the cost of participation in a formal proceeding. However, as a new program, there is no data available to evaluate the number of proceedings the Program will have over the next three years (if it even has any such proceedings), nor the cost savings of a formal versus informal proceeding. Therefore, the benefit to these small businesses is inestimable.

persons other than small businesses, businesses, or local governmental entities:

This rule may result in a modest benefit to other persons involved in the Program administrative proceedings relative to the cost of participation in a formal proceeding. However, as a new program, there is no data available to evaluate the number of proceedings the Program will have over the next three years (if it even has any such proceedings), nor the cost savings of a formal versus informal proceeding. Therefore, the benefit to these other persons is inestimable.

Compliance costs for affected persons:

This proposed rule is not expected to impose any compliance costs for affected persons as it does not have a regulatory component beyond the statute, it merely designates proceedings as informal.

Comments by the department head on the fiscal impact the rule may have on businesses:

The Regulatory Sandbox Program (Program) was adopted in the 2019 General Session under H.B. 378. The Program allows a participant to temporarily test an innovative financial product or service on a limited basis without otherwise being licensed or authorized to act under the laws of the state. This proposed rule complies with the Administrative Procedures Act requirements for informal proceedings by designating proceedings as informal, and specifying procedures for informal proceedings under this new program. This rule may result in a modest benefit to small businesses involved in the Program administrative proceedings relative to the cost of participation in a formal proceeding. However, as a new program, there is no data available to evaluate the number of proceedings the Program will have over the next three years (if it even has any such proceedings), nor the cost of a formal versus informal proceeding. Therefore, the benefit to these small businesses is inestimable.

Francine A. Giani, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Commerce
Administration
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Jacob Hart at the above address, by phone at 801-530-6636, by FAX at , or by Internet E-mail at jfhart@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

10/15/2019

This rule may become effective on:

10/23/2019

Authorized by:

Jacob Hart, Deputy Director

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs	FY 2020	FY 2021	FY 2022
State Government	$0	$0	$0
Local Government	$0	$0	$0
Small Businesses	$0	$0	$0
Non-Small Businesses	$0	$0	$0
Other Person	$0	$0	$0
Total Fiscal Costs:	$0	$0	$0
Fiscal Benefits
State Government	$0	$0	$0
Local Government	$0	$0	$0
Small Businesses	$0	$0	$0
Non-Small Businesses	$0	$0	$0
Other Persons	$0	$0	$0
Total Fiscal Benefits:	$0	$0	$0
Net Fiscal Benefits:	$0	$0	$0

 

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described in the narrative. Inestimable impacts for Non - Small Businesses are described in Appendix 2.

 

Appendix 2: Regulatory Impact to Non - Small Businesses

This rule may result in a modest benefit to non-small businesses involved in Regulatory Sandbox Program (Program) administrative proceedings relative to the cost of participation in a formal hearing. However, as a new program, there is no data available to evaluate the number of proceedings the Program will have over the next three years (if it even has any such proceedings), nor the cost savings of a formal versus informal proceeding.Therefore, the benefit to these non-small businesses is inestimable.

 

Francine Giani, Executive Director, has reviewed and approved this fiscal analysis.

 

 

R151. Commerce, Administration.

R151-55. Regulatory Sandbox Program Rule.

R151-55-1. Title.

This rule shall be known as the "Regulatory Sandbox Program Rule".

 

R151-55-2. Authority - Purpose.

This rule governs adjudicative proceedings under Title 13, Chapter 55, Regulatory Sandbox Program, and is authorized by Utah Code Subsection 13-1-6(2).

 

R151-55-3. Adjudicative Proceedings.

(1) Informal Proceeding. Adjudicative Proceedings before the Department of Commerce under Title 13, chapter 55, Regulatory Sandbox Program are designated as informal adjudicative proceedings.

(2) Applicable Rules. In addition to Title 63G, Chapter 4, Administrative Procedures Act, any adjudicative proceedings under the Regulatory Sandbox Program shall be conducted in accordance with this rule and with the Department of Commerce Administrative Procedures Act Rule, R151-4.

(3) Hearings. Hearings will not be held in proceedings under the Regulatory Sandbox Program.

(4) Presiding Officer. The Regulatory Sandbox Program Manager is designated as the presiding officer in Regulatory Sandbox Program proceedings.

 

KEY: Regulatory Sandbox Program, informal proceedings, adjudicative proceedings

Date of Enactment or Last Substantive Amendment: 2019

Authorizing, and Implemented or Interpreted Law: 13-1-6(2)